[trjordan]

The servers are already bought; the electricity cost is negligible for actual accidents.

As mentioned in the post: the hosting providers don't actually pay marginal costs for transient mistakes, so neither should honest customers.

[joshfraser]

And what about the extra costs fighting fraud now that they've advertised this policy?

[DAlperin]

We have to invest in fighting fraud and abuse anyway, such is the public cloud business. We don't intend to diminish user experience in service of fighting it.